Question: Show your work and explain your answers fully in your own words. Using the AD-AS model, demonstrate which curves shift and how the equilibrium price

Show your work and explain your answers fully in your own words. Using the AD-AS model, demonstrate which curves shift and how the equilibrium price level and Real GDP are affected by each of the scenarios in both the short-run and the long-run (You can select individual curves and then copy and paste them into the graph.) HINT: Make a separate graph for the short-run and long-run Assume that the scenario describes a situation that is unanticipated. Explain your reasoning fully. Suppose that the Federal Reserve pushes up real interest rates far faster than expected during the next year. Show and explain the effect of an increase in the real interest rate, other things constant. Price LRAS SRAS1 P100 AD YF Real GDP

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